Women hoping to retire by age 67 face a tough choice: sock away more cash now or delay retirement even further.
Those were the findings from a recent survey by Aon. The retirement consulting firm analyzed the 2017 records of 1.3 million individual savers, along with data from the Bureau of Labor Statistics.
About 7 out of 10 women participating in the survey will need to overcome significant shortfalls in order to retire at 67, Aon found. Their savings will be short by at least twice their salary.
Female employees are less prepared for retirement because they not only earn less than their male counterparts but also have a longer life expectancy, said Grace Lattyak, associate partner at Aon.
Women in the U.S. generally make about 80 cents to each dollar a man earns. And women have an average life expectancy of about 81, according to the Centers for Disease Control and Prevention. Men have an average life expectancy of about 76 years.
Women also take time out of the workforce to care for family members, which could affect their ability to earn more money and save for retirement, said Lattyak.
Indeed, close to 2 in 3 female workers who took family leave were the primary caregiver for a sick relative, according to data from Pew Research.
"In general, there is a huge gap between the savings that women might have for retirement compared to men," said Avani Ramnani, a certified financial planner and director of financial planning and wealth management at Francis Financial in New York.